Austin Wurschmidt: You kind of commented on the Bickford debt refinancing. So, I had a follow-up. I mean it’s been in the works now for a little while now, it feels like. And I’m just wondering, are we talking about a significant amount of debt? And is there any sense around the time-line of when they could receive the HUD financing?
Kevin Pascoe : So, this is Kevin again. There — I think there were other banks to extend the current debt that they have trying to get a better capital environment. The ability to source debt right now, I think we can all agree, it’s very difficult. The HUD takeout, as it relates to those specific buildings, they’ve got to be stable on their operations for the HUD to be able to take it out at a level that makes sense, which is what Bickford is very focused on. They’ve had several executions on it so far. They’ve got a couple more that are underway. My belief is that they can get that done, but there is some execution that they need to accomplish to ultimately get those closed. Once it does, that will help them be in a much better or more stable financial position as it relates to their debt. So, I think it’s something — their plan is something that’s executable, but it’s going to take a little bit more time.
Austin Wurschmidt: Got it. That’s helpful. And then just the last one for me. I mean Eric, is there anything you can share as far as the negotiations and plan to renew or early renewal on the — I believe the 2026 NHC leases?
Eric Mendelsohn : Just that their discussions are ongoing.
Austin Wurschmidt: Would you expect anything that could get announced or completed before the end of this year?
Eric Mendelsohn : That’s probably not by the end of the year. It’s probably a next-year type of thing.
Austin Wurschmidt: Appreciated thank you.
Operator: We’ll get to our next question on the line is from Connor Siversky with Wells Fargo. Please go ahead.
Unidentified Analyst: It’s for Connor today. And apologies in advance if you guys touched on some of these topics as I was dropped from a portion of the Q&A here. So, in the midst of some of the weakness we’ve seen in independent living throughout this earnings cycle and some of the commentary from NAREIT, is this an area of senior housing where any would like to allocate capital to at the present? Or are there better opportunities that exist within assisted living or skilled nursing from your perspective?
Kevin Pascoe : This is Kevin. As it currently stands, I think the yields are going to be slightly better on the more the needs-driven product, which is where a lot of our attention has been as it is late. I think there could be some opportunities on the independent side. First and foremost, though, we want to make sure we get our portfolio something closer to stable before we do a lot more investment there. That said whether it’s with our current operating partners or with an existing operating partner that — sorry, a new operating partner that could bring some communities and a new relationship to us, we would absolutely explore that. To date, though, we haven’t seen the yields be very enticing on independent living. That’s probably closer to where we see some implied cost of capital still. So, there’s not an accretive margin. We’re tending to focus our efforts elsewhere.
Unidentified Analyst: That’s great, Kevin. And sticking with capital allocation, it sounds a little bit more about your plans for 2H ’23 over here. Specifically, do you anticipate paying down any additional debt or any activity on the equity side?
